Summary:
On the face of it, the solution is obvious: bail out distressed developers because this is mainly a cash flow problem of not being able to pay construction firms to finish projects. Once construction restarts, the units get completed, buyers get their homes, and mortgage payments will start to flow again.But what is obvious is not simple politically. In fact, Beijing has been quite timid in stepping in because it is concerned about a massive moral hazard problem that would shift all the cost onto the central government.…The unanticipated cost of experimenting with capitalism that some hardline socialists warned about.Macro PoloChina’s Mortgage Fiasco: To Bail Out or Not To Bail Out?Houze Songhttps://macropolo.org/china-mortgage-fiascoFinancial cost is one thing. The human cost is another,
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
On the face of it, the solution is obvious: bail out distressed developers because this is mainly a cash flow problem of not being able to pay construction firms to finish projects. Once construction restarts, the units get completed, buyers get their homes, and mortgage payments will start to flow again.But what is obvious is not simple politically. In fact, Beijing has been quite timid in stepping in because it is concerned about a massive moral hazard problem that would shift all the cost onto the central government.…The unanticipated cost of experimenting with capitalism that some hardline socialists warned about.Macro PoloChina’s Mortgage Fiasco: To Bail Out or Not To Bail Out?Houze Songhttps://macropolo.org/china-mortgage-fiascoFinancial cost is one thing. The human cost is another,
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Jodi Beggs writes Economists Do It With Models 1970-01-01 00:00:00
Mike Norman writes 24 per cent annual interest on time deposits: St Petersburg Travel Notes, installment three — Gilbert Doctorow
Lars Pålsson Syll writes Daniel Waldenströms rappakalja om ojämlikheten
Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.
On the face of it, the solution is obvious: bail out distressed developers because this is mainly a cash flow problem of not being able to pay construction firms to finish projects. Once construction restarts, the units get completed, buyers get their homes, and mortgage payments will start to flow again.But what is obvious is not simple politically. In fact, Beijing has been quite timid in stepping in because it is concerned about a massive moral hazard problem that would shift all the cost onto the central government.…
The unanticipated cost of experimenting with capitalism that some hardline socialists warned about.
https://macropolo.org/china-mortgage-fiasco
Financial cost is one thing. The human cost is another, which implies political cost too.
Sixth Tone (Shanghai)
Wu Peiyue
https://www.sixthtone.com/news/1010867/The%20Devastating%20Human%20Cost%20of%20the%20Henan%20Banking%20Crisis